Hydro acquires long-term power supply contract from Statkraft for aluminium plants

Norsk Hydro has acquired a long-term electricity arrangement with Statkraft to provide power supply for its aluminium plants in Norway well into the next decade.

The agreement starts from 2029, up until 2038. Over that period, the total volume adds up to 12.3 terawatt hours, out of which 8.8 TWh will be for NO2, and 3.5 TWh for NO3, to accommodate for varying power pricing across Norway.

As per the agreement signed, Statkraft will supply 0.9 TWh annually in 2029 and 2030, while from 2031 to 2038, it will deliver 1.3 TWh per year

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Aluminium production depends heavily on electricity, and securing it early helps avoid cost swings later especially when energy markets have been anything but stable.

Hydro’s CEO, Eivind Kallevik said, “This agreement underlines how power and industrial development are closely linked in Norway. Together with Statkraft we are strengthening the long-term competitiveness of our aluminium operations. Aluminium is critical across the economy and access to power at competitive prices is essential to deliver future low-carbon solutions for our customers.”

The company is known to produce aluminium in Norway using mostly renewable energy, which keeps emissions significantly lower, about 75 per cent, important for Hydro to achieve their goal of zero emissions by 2050.

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CEO of Statkraft Birgitte Vartdal said the deal fits into its role as a supplier to industry and also continues a long-standing working relationship between the two companies.

Alongside agreements like this, Hydro has also been working on expanding its own renewable energy base and upgrading existing assets, essentially trying to cover both sides: buying power and producing it

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